The Deal: Europe Slips, Asian Stocks Fall on Lack of Chinese Reforms
LONDON (The Deal) -- European and Asian stocks fell on Wednesday, with Asia dragged lower on disappointment about the outcome of a Chinese government economic planning meeting.
In London, the FTSE was down 0.83% at 6,671.71, while in Frankfurt the DAX slipped 0.21% to 9,057.51. In Paris, the CAC 40 was down 0.34% at 4,249.45.
In the U.K., the pound strengthened after the number of claimants for jobless benefit fell more than expected in September. The third-quarter jobless rate declined to 7.6% -- the Bank of England has pinned its next rate rise, with various provisos, to unemployment falling to 7% or below.
In the eurozone, September industrial output fell by an above-forecast 0.5% from August.Across the continent, lenders including HSBC (HBC), Barclays (BCS), Royal Bank of Scotland (RBS)and Lloyds Banking (LYG) in the U.K., Societe Generale and BNP Paribas in France, and Commerzbank and Deutsche Bank (DB) in Germany declined. German pay-TV company ProSiebenSat.1 Media fell after Kohlberg Kravis Roberts & Co. and Permira sold about 1.1 billion euros ($1.5 billion) of shares, or a 16% holding. The buyout firms, which retain a 17% stake, sold the stock at 31.53 euros apiece. The shares by late morning in Frankfurt were down 2.7% at 31.87 euros. The Hang Seng and mainland Chinese indices dropped as an opaque government statement following a four-day Communist Party economic planning meeting was short on detail and radical reforms. Investors had been hoping for liberalizing measures amid concern about slowing Chinese growth. The Hang Seng closed down 1.91% at 22,463.83. In Tokyo, the Nikkei 225 dropped 0.15% to 14,567.16.
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